{"id":61444,"date":"2013-03-07T10:14:04","date_gmt":"2013-03-06T23:14:04","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2013\/03\/07\/investors-exit-gold-etfs\/"},"modified":"2013-03-07T10:14:04","modified_gmt":"2013-03-06T23:14:04","slug":"investors-exit-gold-etfs","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2013\/03\/07\/investors-exit-gold-etfs\/","title":{"rendered":"Investors Exit Gold ETFs"},"content":{"rendered":"
\n\tBy Jonathan Barratt<\/span><\/div>\n
\n\t
\n\tGold looks to be consolidating in a narrow range. It feels as if the metal is torn between those liquidating the metal, searching for higher yielding assets, and those buying the metals because it looks cheap.  As we have mentioned we have always remained concerned that the ETF<\/span> holding in the metal will become its Achilles heel. So many investors piled into the product when we had significant risk on the table, however as geopolitical\/ economic risks start to unwind the reasons to hold the precious metal change.<\/div>\n
\n\t <\/div>\n
\n\tWe can suspect that whilst “risk” is subdued, the outflow of gold from ETFs<\/span> will be an ever-present seller in the market, in much of a similar fashion to the way gold loans offered to the market in the late eighties saw increased sales and depressed prices. It is interesting that the largest gold ETF<\/span> fund, the SPDR<\/span> Gold Trust, has logged its ninth day of consecutive outflows. In February the ETF<\/span> gold market suffered its largest monthly decline in holdings and whilst gold prices in February fell for the fifth straight run since 1997, the metal is starting to be viewed as being cheap and ready for a bounce. We have a neutral bias towards the metal and we look for signs that price pressures or geopolitical risks are coming back on the table before we get serious about a good position.<\/p>\n

\tChart Point:<\/strong><\/p>\n

\tTechnically the picture for gold remains the same: we are in a tight range and as long as the low at US1535 remains in play this represents good support. Before entering into a long position we would look for a bounce. We suggest the range US1535 through to US1645 is now confirmed and perhaps also the bigger range of US1535 through to US1735. We still like the dips.<\/p>\n

\t <\/p><\/div>\n

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\n\t\tEdited by Jonathan Barratt<\/span>, Barratt's Bulletin is a weekly subscription newsletter that provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here <\/a>to take a no obligation 21-day trial to Barratt's or to learn more visit www.barrattsbulletin.com<\/a>. Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).<\/em><\/div>\n<\/div>\n

\n\t\"\"<\/p>\n

\n\tThis report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.<\/i><\/p>\n

\n\tFind out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Jonathan Barratt of Barratt’s Bulletin notes a flow out of gold exchange traded funds is keeping a lid on the metal despite preceptions of cheap prices.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[22],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/61444"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=61444"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/61444\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=61444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=61444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=61444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}